Relatively inelastic supply curve in market power

Marginal revenue is below average revenue as [TR/Q] for a firm along with market power since: (w) the demand curve this faces is negatively sloped. (x) its supply curve is relatively inelastic. (y) marginal cost is below average cost. (z) total revenue is above total cost.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Rang of income elasticities of demand

The income elasticities of demand (μ) for items which most people consider as luxuries would possibly be into the range: (1) – ∞ < μ < one. (2) – 1 < μ < zero. (3) μ = zero. (4) 0 < μ < 1. (5) 1 <

Q : Human Capital-Individuals premium wages

The firm which offers its workers by substantial specific training tends to: (i) Pay such individuals premium wages to try to make sure retaining such workers. (ii) Need workers to sign the legal contracts of indenture and peonage. (iii) Raise worker productivity appr

Q : Problem on Multiple regression analysis

Find two journal articles that have undertaken multiple regression analysis and compare the results. Specify the reference for the two papers.Requirements:

Q : Supply of labor in perfectly

Supply of labor in perfectly competitive market

Q : Problem of Moral Hazard by an individual

The problem of moral hazard is finest explained by the behavior of an individual who: (1) Dates two distinct people on the sly. (2) Doesn’t lock up her car since theft is covered by the insurance. (3) Steals to support the serious drug habit. (4) Understates the

Q : Determinants of demand affect the price

For a particular product how do the determinants of demand affect the price?

Q : Reliablity with standard economic

Which of the given behaviors is least reliable with standard economic suppositions regarding consumer behavior? (i) Gustav cannot decide which of three distinct combinations of goods he favors. (ii) Lynn hates pickled herring; however Chris is willing

Q : Conscious Interdependence in

When firms or individuals attempt to personal gains or maximize profits or to minimize losses by trying to predict how other firms or individuals are probable to reaction, decisionmaking involves: (i) parallelism of action. (ii) profit maximization. (

Q : Define break-even price Break-even

Break-even price: This is the price at which firms form zero normal profit.

Q : Approximate total revenue for

For this profit-maximizing brickyard the total revenue equals approximately: (i) $600 per day. (ii) $900 per day. (iii) $1200 per day. (iv) $1530 per day.

Discover Q & A

Leading Solution Library

Avail More Than 1444868 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1928854
Asked

3,689

Active Tutors

1444868

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment